Wednesday, September 21, 2011

The stock is down 24 cents at $6.66.
From MarketBeat:Bank of America, Wells Fargo: The Downgrade Shoe Finally Drops

For a long, long time now, investors have been waiting
for the day when credit-rating agencies cut their ratings on the big
banks due to the possibility that they might get less support from the
US government. That day has come.

Moody’s has downgraded Bank of America’s long-term credit rating two
notches to “Baa1″ from “A2″ and its short-term rating to P-2 from P-1.

Baa1 is equivalent to BBB in other rating scales, which is just about the average credit rating for corporate bonds.

And this is not an unexpected development. Still, it’s not welcome
and could lead to higher borrowing costs. Bank of America stock is down
about 3% at last check to $6.69. Update: It’s now down 4.5% at $6.58.
This could have other Too Big to Fail Banks looking over their
shoulders, too. They’ve also been warned in the past of the potential
for a downgrade. The XLF is down 2%....MORE

Is that Cramer under there?

Here's his September 13 Lightning Round comment:

"...there could be as much as $30 billion in legal exposure... they are
reserved for a lot of that when you take the Buffett money and the sale
from the Chinese bank... the litigation risk is not as bad as people
think. The earnings risk is different... when people are cutting
JPMorgan's earnings estimates, BAC is not going to make a lot of
money. They are going to make money, though... It has done nothing, it
has been a loser. I think it was bottoming when Warren Buffett bought
it, and here, I think it is bottoming."

The stock had closed that day at $7.00. Look for him to mention it a couple times in the next day or so.